Orange County Bankruptcy

According to Mark Baldassare , there are three main factors, which cause Orange County bankruptcy. The first one in the political fragmentation, the county had 31 cities and more than 150 governmental entities. Second, distrust of government was rampant among an electorate that was not traditionally conservative but, rather, “new fiscal populist,” combining dislike of taxes with moderate social views and a middle-class bias, in favor of the selective continuation of government programs for its own benefit rather than for those less well off. Third, state fiscal austerity played a major role. Orange County, was especially hard hit by the annual loss of $100 million in property taxes from the state during 1991-1994.

Orange County, California is one of the wealthiest counties in the county. Orange County had one of the largest municipal failures in U.S history. In 1994, the Orange County investment pool was declared bankrupt and realized $1.6 dollars of loss for their investors. The reckless behavior of the fund manager, Treasurer Tax Collector Robert Citron and lack of oversight from the Orange County Board of Supervisors led directly to the collapse. The bankruptcy is often termed a derivatives failure.

The loss of your job, a change in your income, an unexpected emergency or any other number of factors may cause your, or others in Tennessee, to struggle with debt. If you are dealing with financial challenges, then you may have considered filing bankruptcy. Sometimes, however, it can be difficult to know if Chapter 7 bankruptcy is the right option for you.

To protect the profitability and reputation of one’s business, scheduling commercial mediation to handle disputes is a wise decision.

In late 2007, America was hit with the most significant blow to its finance sector since the Great Depression. Upon careful retrospection of the nations economic policy since the Great Depression, many discovered that slowly but surely, America had been setting itself up for the “perfect storm” all along. Without question, it was evident that due to deregulation, excessive accumulation of debt (especially in the form of over leveraging), greed, treacherous decision-making, and obscure practices between financial institutions, America’s economy was brought to a screeching halt. While facing the impending failure of the country’s powerhouse banks, the federal government was forced to intervene, saving some banks, while merging or leading others to their demise. Additionally, the United States Department of Treasury was faced with rectifying the lack of credit available to fuel commerce, both business and personal. After jump-starting the nations cash flow with government assistance packages, the government introduced reform to oversee and limit corporations that are deemed “too big to fail” hoping to ensure that no such economic downturn should arise in the future.

New methods in financing prisons and other public institutions, like court houses, schools, and equipment are being developed by both state and local governments. Generally, voter approval is not subject to these types of alternative financing arrangements. However, voters have challenged such alternative financing efforts in court. By reducing the prison population by 10 percent would save approximately $3 billion dollars per year just by moving inmates into the parole system. When searching for various means to save money, cut expensive and ineffective programs and policies, simply implement policies that reduce the numbers entering and returning to prisons is the most effective means to save money and keep communities safe. For long-term increases in public safety, reduce prison population will be the result if done correctly. Recommendations from the Justice Policy Institute in the following areas to improve public safety and save money. First, re-examining incarceration policies violations of parole conditions and small time drug offenses to include nonviolent crimes. Explore alternatives that are non-incarcerated and community-based.

Prior to the Federal Deposit Insurance Act (FDIA) of 1950, federal regulators could take only one of two approaches for dealing with an insolvent corporation: force permanent closure of the firm, or encourage other firms to purchase the dissolved one. The FDIA made it possible for the government to provide assistance to firms through loans and asset acquisition until they recovered and performed better. As this third option involves the directing of public money into salvaging private corporations, its application has been a matter susceptible to great contention since the act’s creation.

Chapter 7 bankruptcy: the bankruptcy in chapter seven is known as a liquidation process. This process is used when a corporation basically has no other alternatives in saving the corporation and has the ability to attain the essential creditor settlement. All of the corporation’s possessions have to be vended for their palpable value. There has been over a numerous amount of corporations who have declared bankruptcy on a yearly basis. Chapter 9 bankruptcy: this bankruptcy applies to all the cities in all areas. The biggest city to ever announce bankruptcy is Detroit, Michigan. However, there have been others such as: Stockton, California, and lastly, Birmingham, Alabama. Chapter 11 bankruptcy: this bankruptcy means that corporations are able

the age of 59 in this case. This penalty alone is evidence that IRAs should be

When filing bankruptcy, filers submit a budget and detailed explanations of all income and expenses. Everything must be very detailed, exact and thorough. In some cases, the financial details can change drastically after the bankruptcy is underway. For instance, a loved one could pass away and leave an inheritance behind. If you are in the middle of filing for bankruptcy when you are designated as a beneficiary, will you lose your inheritance?

The climax of the 2008-2009 financial crises, the largest ever since the Great Depression of the 1930s, witnessed the near collapse of multibillion-dollar industries in the United States. Concerns over the economic impact of the possible collapse of these industries compelled the then administration and Members of Congress to seek legislative options to salvage them. Consequently, two of the industry biggest players in the auto industries, General Motors and Chrysler, were offered financial support by the government and in return, shareholders and other stakeholders had to make necessary sacrifices in order to fundamentally restructure their businesses and commit to the tough decision of returning the companies to financial viability. In

The recent change was part of a major reorganization to emphasize the progress toward rehabilitation to reduce recidivism and to provide inmates with the training and education to successfully re-enter society following the completion of their sentences. Governor Arnold Schwarzenegger noted that “California's $6 billion correctional system suffers from a multitude of problems – out-of-control costs; a recidivism rate far exceeding that of any other state; reported abuse of inmates by correctional officers; an employee disciplinary system that fails to punish wrongdoers; and the failure of correctional institutions to provide youth wards and inmates with mandated health care and other services” (Unknown, n.d.).

I recognize there are certain situations where the government should contribute financial assistance in preventing massive companies from failing, because some companies provide economic stability and are too important to fail. However, an accurate determination of the national economic damages that a corporation’s bankruptcy may produce should be imperative in justifying whether a bailout is legitimate. An extensive corporation’s bankruptcy may have conflicting impacts on the economy such as; an increase in national unemployment rates, reduction of gross national profits and gross domestic products output. These plus countless other factors overtime could possibly influence a weakening in our economic system trickling down to the value of

In March 2008, the government of the United States was abruptly confronted with the first signals of what later became the greatest financial crisis in U. S. history since the Great Depression. The beginnings of the financial crisis began with the government intervention or bailout of Bear Sterns, the smallest of the five giant Wall Street investment banks, but the first one known to be in financial trouble. After the government’s rescue of Bear Sterns, more major financial institutions were found to be financially unstable as the meltdown of the financial markets continued, and the U.S. government was confronted with the dilemma to let the other Wall Street investment banks and businesses fail, or to rescue them since they were thought to be too big to fail (Sorkin, 2009).

Foreclosure. Only recently has the term become a buzz word among the American public and various media. The crisis that has enveloped the United States has initiated widespread questioning of the very financial systems in which the American innovators have grown to prosper. Although the foreclosure crisis is often viewed as a product of greedy financial institutions, causation cannot be distilled to individual constituencies; further regulation on various components of the crisis can develop the preconditions for recovery, but 2009 has elucidated a stunning reality: the American financial system possesses an independent resiliency that is currently rebounding and developing recursive and futuristic solutions with minimal exterior